How Large Is the Compensating Wage Differential for R&D Workers?
AbstractThe aim of this paper is to measure the extent to which lower wages in R&D functions reflect a preference effect. In contrast to the bulk of the literature on compensating wage differentials that compares wage levels of jobs with different attributes, we constructed measures of willingness to accept (WTA) and pay (WTP) for an R&D jobs using contingent valuation technique. Earnings regressions using OLS show an R&D wage penalty of about 3.5%. However, hedonic OLS regressions of WTA and WTP give significant relative preference parameters for R&D jobs that range from 0.19 to 0.22.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4194.
Length: 26 pages
Date of creation: May 2009
Date of revision:
Publication status: published in: Economics of Innovation and New Technology, 2010, 19 (5), 423-436
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Other versions of this item:
- Arnaud Dupuy & Wendy Smits, 2010. "How large is the compensating wage differential for R&D workers?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 423-436.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-INO-2009-06-03 (Innovation)
- NEP-IPR-2009-06-03 (Intellectual Property Rights)
- NEP-LAB-2009-06-03 (Labour Economics)
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